Financial Inclusion and Household Financial Behavior

24 Pages Posted: 1 Dec 2020

See all articles by Renata Herrerias

Renata Herrerias

Instituto Tecnológico Autónomo de México (ITAM) - Department of Business Administration

Date Written: October 22, 2020


I study the heterogeneity of individual’s financial-management behavior and its relation to financial inclusion among households in Mexico using data from the 2018 national financial inclusion survey (ENIF). To measure individual’s financial behavior, I create a score applying factor analysis to answers on questions about money management, savings and consumption habits that are related to financial well-being. I question whether households who are part of the formal financial system report better financial behavior than individuals outside the financial system, and which type of financial product is more relevant. I find that financial-management behavior is positively related to uses of financial services and products, particularly to having savings accounts and insurance. However, households using payroll accounts, accounts to receive government transfers, pensions or credit products do not report better financial behavior. Additionally, individuals using informal savings vehicles show better financial behavior, but those using informal credit report worst financial behavior. Formal education, financial literacy and income are also important factors in explaining financial behaviors related to financial well-being.

Keywords: Household finance, Financial inclusion, Financial behavior, informal savings

JEL Classification: G2,O1

Suggested Citation

Herrerias, Renata, Financial Inclusion and Household Financial Behavior (October 22, 2020). Available at SSRN: or

Renata Herrerias (Contact Author)

Instituto Tecnológico Autónomo de México (ITAM) - Department of Business Administration ( email )

Rio Hondo No. 1
Progreso Tizapan
Mexico, D.F. 01080
+52(55)56284000 x. 6535 (Phone)


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